Course Syllabus
Class Meeting: Mondays 2:20-5:10pm; WH 104 and Zoom
Instructor: J.L. Nave, M.B.A., M.A.
OFFICIAL COURSE DESCRIPTIONS
AADM-Y 515 Financial Management for the Arts (3 cr.)
The course introduces students to the role of financial management in the modern not-for-profit organization. This course covers applications of budgeting, financial and managerial accounting principles, and procedures and financial analysis for nonprofit organizations. Materials covered should be considered required knowledge for the mid-to-senior-level arts administrator.
SPEA-F 526 Financial Management for Nonprofit Organizations (3 cr.)
This course emphasizes a thorough understanding of the language and key concepts of nonprofit financial management. A working knowledge of the basic analytical tools used in financial decision making for nonprofit organizations will be examined through the use of computer software.
INSTRUCTOR DESCRIPTION
Financial management is not simply about producing accurate numbers. Arts and nonprofit leaders must understand what those numbers mean, what story they tell about the organization, and how that story should influence decisions.
This course approaches financial management from that perspective. We will learn the accounting and financial concepts necessary to understand an organization’s financial position, but our primary emphasis will be on applying that knowledge. Throughout the semester, you will interpret financial information, identify risks and opportunities, evaluate competing priorities, make management decisions, and communicate financial information to people who may not have financial expertise.
The course is intensely practical. We will use real-world examples, nonprofit financial statements, management scenarios, and a semester-long budget simulation to explore the relationship between financial decisions and mission fulfillment. Topics include financial statements and analysis, revenue and cost structures, budgeting, liquidity and cash flow, performance measurement, capital decisions, internal controls, and financial risk.
A recurring theme throughout the course will be financial storytelling: moving beyond what the numbers are to explain what they mean, why they matter, and what an organization should do as a result. By the end of the semester, you should be better prepared not only to understand nonprofit finances, but also to use financial information as a management and communication tool.
COURSE LEARNING OUTCOMES
By the end of the semester, students should be able to:
- Explain the relationships among mission, programs, financial resources, and organizational sustainability in a nonprofit organization.
- Interpret nonprofit financial statements and other financial information to identify significant trends, strengths, risks, and opportunities.
- Distinguish among major revenue, expense, asset, liability, and net-asset classifications and explain how financial transactions affect an organization’s financial position.
- Evaluate liquidity, financial performance, revenue diversification, program economics, and other indicators relevant to nonprofit financial health.
- Translate financial data into a clear financial story that communicates what the information means and why it matters to nonfinancial stakeholders.
- Develop and evaluate an operating budget that balances mission priorities, financial sustainability, liquidity, organizational capacity, and risk.
- Use financial evidence to make and defend management recommendations, including decisions involving competing priorities and uncertainty.
- Collaborate across functional areas to understand how decisions in programming, marketing, fundraising, finance, and operations affect the organization as a whole.
- Communicate financial analysis and budget recommendations clearly and professionally to organizational leadership and boards.
How much time should you be spending on this class: If this is a standard 3-credit semester length class, you are expected to spend an average of 6 or more hours outside of class per week on reading, studying, assignments, etc. If this is a 6- or 8-week 3-credit class, you are expected to spend at least 12 hours outside of class per week on these activities.
O’NEILL SCHOOL OF PUBLIC AND ENVIRONMENTAL AFFAIRS STUDENT HONOR CODE
Introduction
The O’Neill School takes matters of honesty and integrity seriously. We expect O’Neill students will, at all times, maintain academic integrity and civil and professional standards of conduct.
Scope
O’Neill’s Student Honor Code applies to all courses and programs offered by O’Neill, and to all students who participate in O’Neill classes and programs, regardless of whether students are admitted to O’Neill. Students studying at O’Neill are expected to continue their commitment to ethical behavior in all their endeavors, including, but not limited to, coursework inside and outside of O’Neill, internships, community service, and overseas study.
O’Neill’s Student Honor Code incorporates IU’s Code of Student Right, Responsibilities, & Conduct and extends to matters of civility and professional conduct, including, expectations about class attendance, punctuality, participation in class, and decorum in class and at other school functions.
Academic Conduct Requirements
All students enrolled in O’Neill courses are subject to the academic misconduct provisions found in the IU Code of Student Rights, Responsibilities, & Conduct.
Academic misconduct is defined as any activity that tends to undermine the academic integrity of the institution.
The IU Code of Student Rights, Responsibilities, & Conduct lists and defines many types of academic misconduct, including cheating, fabrication, plagiarism, interference, violation of course rules, and facilitating academic dishonesty.
Academic misconduct includes the use of any technology or assistance, including AI, that is not permitted by the instructor.
Civility and Professional Conduct Requirements
O’Neill requires that all students treat others with mutual respect and behave professionally in the classroom and during all academic and non-academic activities.
These civility and professional conduct requirements foster an appropriate atmosphere inside and outside the classroom:
- Students must act in accordance with the O’Neill School mission and values.
- Students must regularly attend and be fully prepared for class, including completing readings.
- Students must not behave in a way that interrupts or distracts from teaching or learning. For example, students must be punctual in their arrival to class and be present and attentive for the duration of the class. They must not sleep, do work for another class, or wander in and out of the classroom, pack up, or leave class early (unless an emergency exists).
- Students must abide by the course policy regarding use of electronic devices in the classroom, including a requirement that no electronics are allowed or that students are not permitted to use devices for non-class related purposes.
- Students must responsibly participate in class activities and during team meetings for course assignments.
- Students must attend scheduled meetings with faculty or staff, events for which they have RSVPed, interviews with prospective employers, and student organization meetings.
- Students must address faculty members, other students, and others appropriately and with respect, whether in person, in writing, or in electronic communications.
- Students must show tolerance and respect for others.
- Students must practice respect and responsible stewardship of the physical resources of the school, refraining from destroying or defacing school property, integrating practices of sustainability, and contributing to a clean and orderly physical environment in all buildings, classrooms, offices, and meeting spaces.
- Students must comply with the personal misconduct responsibilities within the IU Code of Student Rights, Responsibilities, & Conduct.
Reporting
Students must abide by the O’Neill Student Honor Code themselves and hold their peers to the same standards. Students should report suspected instances of academic, civility, or professional misconduct to the instructor of the course. Students should report suspected instances of personal misconduct to the IU Office of Student Conduct.
COURSE REQUIREMENTS
Grading Scale
A+ 100.0% to 97.0%
A <97.0% to 93.0%
A- <93.0% to 90.0%
B+ <90.0% to 87.0%
B <87.0% to 83.0%
B- <83.0% to 80.0%
C+ <80.0% to 77.0%
C <77.0% to 73.0%
C- <73.0% to 70.0%
*Per university graduate school policy, any grade below C is considered a failing grade.
Summary of Course Grading
|
Course Components |
Weight |
|
Financial Management Applications (9 x 4 points) |
36 points |
|
Mid-Term Financial Story Analysis |
20 points |
|
Final Project – Checkpoint 1: Operating Plan Review |
5 points |
|
Final Project – Checkpoint 2: Executive Budget Review |
5 points |
|
Final Project – Written Budget Packet |
24 points |
|
Final Project – Board Presentation |
10 points |
Exit Pulses are required formative activities but are not included in the 100 graded course points.
Exit Pulse
Most class sessions will conclude with a brief Exit Pulse. The purpose is to help you identify what you understand and what may still need clarification while giving the instructor and Teaching Assistant timely information about where additional explanation or practice may be useful.
Exit Pulses will generally ask you to identify:
- one concept, connection, or application that makes more sense to you after the class; and
- one question, uncertainty, or area in which you would benefit from additional clarification.
Some Exit Pulses may instead ask you to rate your confidence in applying a concept or identify the part of that day's material you would find most difficult to use independently.
Exit Pulses are not graded for correctness. It is entirely appropriate to identify something you do not yet understand. Their purpose is to make questions and uncertainty visible while there is still time to address them.
Financial Management Applications — 36 points
Nine Financial Management Applications will be completed during the semester. Each is worth four points.
These are short, individual exercises designed to help you practice using financial concepts in realistic management situations. Rather than simply recalling definitions or performing calculations, you will be asked to interpret information, explain its significance, and make or support a management recommendation.
Applications may involve financial transactions, financial statements, revenue classification, program economics, budgeting decisions, cash flow, working capital, performance measures, strategic investment, risk, or internal controls.
The emphasis is not simply on reaching a correct answer. You should be able to explain what the information means, why it matters, and how it should inform a decision.
Correction Opportunity
Learning financial management requires practice, and an incorrect first response can be useful if you understand why it was incorrect.
If you earn fewer than four points on a Financial Management Application, you may submit a brief correction within one week of receiving feedback. Your correction should identify what was incorrect or incomplete in your original response and explain how you would now answer it.
A satisfactory correction may recover up to one point on that Application.
Mid-Term Financial Story Analysis — 20 points
The Mid-Term Financial Story Analysis is an individual project using the most recent available IRS Form 990 of a visual or performing arts organization of your choice.
The purpose of the assignment is not to summarize the Form 990. The intended audience—the organization's Executive Director and board Finance Committee—can read the form themselves. Your responsibility is to determine what financial story the information tells and what organizational leadership should understand because of it.
You will review the organization's mission and program activity, compliance, governance and compensation, revenue, expenses, assets and liabilities, and financial reporting. You will then determine which findings are most consequential to the organization's financial story.
Your analysis will include:
- an Executive Financial Story identifying the two or three most important conclusions leadership should understand;
- three significant financial findings, each supported by appropriate evidence and explaining the meaning and management implications of that evidence;
- appropriate recommendations or monitoring priorities arising from your findings; and
- at least one student-created chart, table, or other financial visualization that helps communicate an important conclusion.
You are expected to review all required areas of the Form 990, but you are not expected to write about every number or every section. Effective financial analysis requires judgment about what is significant.
The central distinction for this assignment is between reporting and analysis. Reporting tells the reader what the numbers are. Analysis explains what the numbers mean, why they matter, how they relate to one another, and what leadership should consider doing as a result.
Detailed assignment requirements and scoring criteria will be provided in Canvas.
Final Project — Management Budget Simulation — 44 points
The Final Project is a semester-long management budget simulation completed in an assigned five-person team. Your group will serve as the senior management team of a fictitious nonprofit organization and will develop an annual operating budget, evaluate its financial and mission implications, revise the budget as conditions require, and ultimately recommend a final budget to the organization's board of directors.
This is not simply an Excel exercise. The project requires your team to make and defend interconnected decisions involving programs and services, pricing and demand, marketing, fundraising and institutional funding, staffing, restricted and unrestricted revenue, revenue recognition, cash flow, reserves and borrowing, mission impact, financial risk, and organizational sustainability.
Each student will serve in one of five management roles:
- Executive Director
- Finance & Operations Director
- Program Director
- Marketing Director
- Development Director
The roles are intentionally interdependent. The project should not be approached as five separate assignments that are combined at the end. Decisions made in one functional area will affect other areas of the organization, and management teams will be expected to identify those effects, resolve competing priorities, and revise assumptions as the financial consequences become clear.
There is no single correct budget. Strong work will demonstrate sound financial reasoning, thoughtful management judgment, appropriate attention to mission and risk, and the ability to explain why the team's decisions are defensible.
Checkpoint 1 — Operating Plan Review — 5 points
At the first checkpoint, the management team will present and discuss its initial operating assumptions. A balanced budget is not required at this stage.
The purpose of the checkpoint is to determine whether the group has developed a coherent first set of decisions, coordinated assumptions across functional areas, and identified significant uncertainties or risks.
Discovering that an initial decision creates a deficit, cash-flow problem, or other financial challenge does not by itself reduce the group's grade. Identifying such a problem and understanding its implications is part of the budgeting process.
Checkpoint 2 — Executive Budget Review — 5 points
At the second checkpoint, the group will present its first integrated organizational budget, including its operating result, program economics, cash-flow forecast, working-capital implications, financing decisions, key performance indicators, and preliminary budget notes.
The group must also demonstrate at least one meaningful budget iteration: an initial assumption produced a financial problem or opportunity, management identified the issue, a decision was changed, and the revised financial result was evaluated.
The purpose of this checkpoint is to demonstrate that budgeting is an iterative management process rather than an exercise in entering numbers into a spreadsheet.
Final Written Project — 24 points
The Final Written Project consists of three components:
- Final Budget Workbook
- Board Budget Packet
- Individual Management Analysis
The Board Budget Packet is a group product designed for the organization's board of directors. It will summarize the financial and strategic implications of the proposed budget, including major management decisions and tradeoffs, mission implications, program economics, strategic investments, liquidity and financing, risks, and significant assumptions that management should monitor during the year.
The purpose is not to reproduce detailed workbook schedules or describe every revenue and expense line. The packet should explain what the budget means and why management recommends it.
Each student will also submit an Individual Management Analysis explaining the most important decisions and financial reasoning associated with their role, the cross-functional effects of other management decisions, and significant assumptions or risks the board should monitor.
Final Board Presentation — 10 points
During the final class, each management team will present its budget recommendation to the board.
The central question of the presentation is: Why should the board approve this budget?
The presentation should communicate an integrated organizational strategy rather than a series of departmental reports. Every member of the management team must participate, and any team member may be asked about significant financial issues affecting the organization—not only those associated with their assigned functional role.
Detailed requirements, deadlines, and scoring criteria for all components of the Management Budget Simulation will be provided in the Final Group Project instructions in Canvas. Those instructions are the controlling source for project requirements, while the Budget Workbook is the financial source of truth for the simulation.
Academic Integrity
You are reminded of your responsibilities at https://studentcode.iu.edu/.
Use of generative AI (such as ChatGPT) in this class
Using AI to assist in completing assignments in this class is prohibited. If you do use AI, you will be committing plagiarism* and will be subject to penalties in this class and sanctions by Indiana University. You are permitted to use the free version of Grammarly and Microsoft Word’s spelling and grammar tool.
WARNING: Submitting any questions, assignments, notes, slides, or other instructor-produced course materials into Generative AI without permission is a violation of the faculty member’s exclusive rights and will be reported to the Dean of Students as academic misconduct.
*Plagiarism: Plagiarism is defined as presenting someone else’s work, including the work of other students, as one’s own. Any ideas or materials taken from another source for either written or oral use must be fully acknowledged, unless the information is common knowledge. https://studentcode.iu.edu/responsibilities/academic-misconduct.html. (emphasis added)
REQUIRED COURSE MATERIALS
Required Textbook: Lynne A. Weikart and Greg G. Chen, Budgeting and Financial Management for Nonprofit Organizations, Waveland Press (2022), 2nd Edition, ISBN 978-1-4786-4619-8.
Available by clicking "IU eTexts (Unizin Engage)" in the menu on the left.
Supplemental course readings can be accessed through Canvas.
Course Materials—Instructor’s Exclusive Rights
The faculty member teaching this course holds the exclusive right to distribute, modify, post, and reproduce course materials, including all written materials, study guides, lectures, assignments, exercises, and exams. While you are permitted to take notes on the online materials and lectures posted for this course for your personal use, you are not permitted to re-post in another forum, upload to AI, distribute, reproduce content from this course, or sell the instructor’s course materials (including notes and study guides) without the express written permission of the faculty member.
Violations of this policy will be reported to the Dean of Students as academic misconduct (violation of course rules). Sanctions for academic misconduct may include a failing grade on the assignment for which the notes/study guides are being sold, a reduction in your final course grade, or a failing grade in the course, among other possibilities.
Additionally, you should know that selling a faculty member’s course using IU email, or via Canvas may also constitute a violation of IU information technology and IU intellectual property policies; additional consequences may result.
INSTRUCTOR’S CLASSROOM POLICIES
Attendance In-person and Virtually
This class will use a combination of virtual and in-person instruction. Students are expected to attend these classes in-person unless prior arrangements have been made with the instructor: August 24, August 31, September 21, September 28, October 19, October 26, November 16, November 30, and December 7. All other class sessions will be conducted virtually on Zoom.
Behavior During Class
- Arrive to class on time.
- Cameras must be on when we meet virtually.
- Cell phones and other electronics turned off or silenced.
- Do not dominate any discussion.
- Keep an open mind and be willing to express your opinion, even if you think it is in the minority.
- Minimize distractions when meeting virtually.
- Mute yourself when not directly contributing to the class.
Communication
Contacting the instructor:
You may contact me with questions via email (use the email within Canvas) or schedule an appointment to meet in-person (only on in-person class days) or virtually. I normally respond to email within 24 hours Monday-Friday. If you email on Saturday or Sunday, it will likely be Monday when I respond. If you have not heard from me within this timeframe, please send a polite reminder.
Helping each other:
Before emailing a question on a due date or assignment expectation or location of a resource in the Canvas site, please check the assignment in Modules. I have found that many questions (such as “where is it located?” or “when is it due?”) are answerable by others in the class and it typically happens in a rapid timeframe. Thanks in advance for your helping behavior toward each other.
Due Dates and Late Work
Assignments are due at the posted time with a 90-minute grace period (no penalty). After the grace period, late work is accepted for up to 72 hours at 0.42% per hour (10% off per 24 hours); after 72 hours, no credit is awarded.
For group submissions, only the Executive Director role must submit; in case of last-minute tech issues, upload a timestamped PDF placeholder with a share link to the working file to stop the clock.
An assignment extension may be given for military duty, religious observance, illness, or death in the family. For any of these, however, except in very extenuating circumstances, please notify me or the TA by email before the scheduled event. Other than unavoidable cases, no extension will be given if you contact me later.
Technology Use
To be successful in this class it is essential to have and use the following technology.
- Latest versions of Google Chrome or Mozilla Firefox (Microsoft Edge may work for most components)
- Latest version of Adobe Reader (free download; or go to IUWare to get Adobe Acrobat DC for full editing functionality when working with PDF files)
- Microsoft Excel® (Excel® 2013 or newer; available at IUWare)
Tech Support
You may encounter computer software (Web site or application) or hardware issues. Please contact Tech Support 24/7 for all software and hardware issues, including the inability to open a PDF file. Macs (especially using Safari) are problematic, and you will want to contact Tech Support at the beginning of the term for help if using a Mac. Here is the tech support info for 24/7 chat or telephone help for this and all other IUB and IUPUI online courses (has Indy and Bloomington information; walk-in summer hours may vary).
- Phone: IU-Bloomington: 812-855-6789; IUPUI: 317-274-4357.
- Chat now with Tech Support. Click on this link; this is the method I usually use to get IT help.
Late Withdrawal
See https://calendars.registrar.indiana.edu/official-calendar/ for dates. NOTE: After the auto-W deadline, withdrawal will be significantly limited, and you will need permission to withdraw and must meet requirements established by O’Neill.
ADDITIONAL INFORMATION
Counseling and Psychological Services
For information about services offered to students by CAPS: http://healthcenter.indiana.edu/counseling/index.shtml
TimelyCare
Indiana students have free, 24/7 access to virtual mental health care services with TimelyCare. Students do not need insurance to access TimelyCare services. https://www.iu.edu/mental-health/find-resources/timely-care.html#0
Religious Accommodation Requests
The "Request for Accommodation for Religious Observances" form must be submitted by the student to the professor no later than two weeks prior to the anticipated absence. A separate form must be submitted for each absence and for each course. Faculty do not have to consider accommodations for the purpose of allowing students to travel away from Bloomington for religious observance. Information about the policy is found here: https://vpfaa.indiana.edu/resources/religious-observances-information.html
Accessible Educational Services (formerly Disability Services for Students)
Securing accommodations for a student with disabilities is a responsibility shared by the student, the instructor, and the AES Office. For information about support services or accommodations available to students with disabilities, and for the procedures to be followed by students and instructors: https://studentlife.indiana.edu/student-support/iub-aes/index.html
Sexual Harassment
As your instructor, one of my responsibilities is to help create a safe learning environment on our campus. Title IX and our own Sexual Misconduct policy prohibit sexual misconduct. If you have experienced sexual misconduct, or know someone who has, the University can help.
If you are seeking help and would like to talk to someone confidentially, you can make an appointment with:
- i. The Sexual Assault Crisis Service (SACS) at 812-855-8900
- Counseling and Psychological Services (CAPS) at 812-855-5711
- Confidential Victim Advocates (CVA) at 812-856-2469
- IU Health Center at 812-855-4011
For more information about available resources: http://stopsexualviolence.iu.edu/help/index.html
It is also important to know that federal regulations and University policy require me to promptly convey any information about potential sexual misconduct known to me to our campus’ Deputy Title IX Coordinator or IU’s Title IX Coordinator. In that event, they will work with a small number of others on campus to ensure that appropriate measures are taken and resources are made available to the student who may have been harmed. Protecting a student’s privacy is of utmost concern, and all involved will only share information with those that need to know to ensure the University can respond and assist. I encourage you to visit http://stopsexualviolence.iu.edu/help/index.html to learn more.
IU Culture Centers
https://studentlife.indiana.edu/communities/culture-centers/index.html
Course Summary:
| Date | Details | Due |
|---|---|---|